In the five-year horizon set out in the paper, the EU executive envisions "a deep and comprehensive" trade deal. But it said China would first have first to stop dumping exports in the EU at artificially low prices.

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China, it said, would have to "make significant, time-bound and verifiable cuts in industrial over-capacity, notably in the steel sector, to prevent negative consequences from unfair competition".

The commission also said that trade talks would follow "an ambitious investment agreement between the two sides."

It said it hoped to conclude the terms of Chinese participation in its €315-billion EU investment plan, the so called Juncker plan. Chinese participation in the fund was already agreed in principle last year during a visit to Beijing by EU investment commissioner Jyrki Katainen.

Other areas of cooperation highlighted by the commission included research and innovation and "connecting the Eurasian continent via a physical and digital network through which trade, investment and people-to-people contact can flow".

More generally, the communication identified “major opportunities for the EU's relationship with China, in particular with the aim of creating jobs and growth in Europe as well as vigorously promoting a greater opening up of the Chinese market to European business."

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Europe is losing out to China on exports to Russia. EU sanctions are one likely reason, but they have had scant political impact because most of the world continues to do business as usual with Moscow.

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China hopes the EU will respect China's sovereignty and territorial integrity and play a constructive role in the resolution of the South China Sea disputes through bilateral negotiations rather than arbitration, says the Chinese Ambassador to the EU.